AuRico Gold Announces Preliminary First Quarter Operational Results

AuRico Gold Announces Preliminary First Quarter Operational Results
PR Newswire
TORONTO, April 15, 2013
TORONTO, April 15, 2013 /PRNewswire/ --
AuRico Gold Inc. (TSX: AUQ) (NYSE: AUQ) , ("AuRico" or the "Company") today
announces preliminary first quarter operational results. All amounts are in
U.S. dollars unless otherwise indicated.
Production and cash costs in the first quarter were in-line with plan at both
operations. As previously guided, production from Young-Davidson is expected
to increase significantly during the second half of the year following the
commissioning of the shaft crushing and hoisting system, which is the key
catalyst to drive significant increases in underground and further cost
efficiencies.
Preliminary 2013 First Quarter Operational Results
Q1 2013 2013 Guidance
Young-Davidson
Gold Ounces Produced 28,281 120,000-140,000
Total Cash Costs per ounce[1],[2],[3] $695 $575-$675
El Chanate
Gold Ounces Produced 17,889 70,000-80,000
Total Cash Costs per ounce[2],[3] $562 $550-$600
Consolidated Results
Gold Ounces Produced 46,170 190,000-220,000
Total Cash Costs per ounce[2],[3] $633 $565-$645
[1]Priortocommissioningtheundergroundmine,cashcostsare
calculatedonouncesproducedfromtheopenpitonly.Allundergroundcostsarecapitalized,andanyrevenuerelatedtoundergroundounces
soldiscreditedagainstcapital.
[2]Cashcostsareestimatesonlyandaresubjecttochange.
[3]SeetheNon-GAAPMeasuressectiononpage30oftheManagement's
DiscussionandAnalysisfortheyearendedDecember31,2012.
Recent Highlights
*The Board of Directors declared the Company's initial quarterly dividend
payment of $0.04 per share for the first quarter ended March 31, 2013,
payable on April 18, 2013 to shareholders of record at the close of
business on April 4, 2013.
*The Company completed a $300 million "modified Dutch auction" substantial
issuer bid and subsequently purchased and cancelled 36,144,578 common
shares.
*The Company announced Proven and Probable Mineral Reserves of 6.8 million
gold ounces (201,695 tonnes at 1.05 g/t) as at December 31, 2012, a 1.69
million ounce increase over 2011, primarily driven through reserve
additions reported from the Kemess Underground Project.
*The Company announced results from the Kemess Underground feasibility
study that surfaces additional option value and outlines the development
of an underground block cave operation with average annual production of
105,000 ounces of gold and 44 million pounds of copper at cash costs of
$213 per ounce of gold, net of by-product credits, over a mine-life of
approximately 12 years.
Young-Davidson Update
*The Company is currently mining from the third and fourth stopes in the
underground mine and productivities continue to ramp-up well and averaged
1,130 tpd during the quarter.
*Open pit productivities remain at targeted levels and averaged 34,192 tpd
during the quarter.
*The mill facility is currently operating above nameplate capacity and
averaged approximately 6,466 tpd during the quarter, and averaged a record
7,234 tpd in March.
*The mid-shaft crushing and hoisting system is progressing on schedule and
remains on target to commission during the third quarter and will be the
key catalyst in driving increased production levels in the second half of
the year.
El Chanate Update
*The El Chanate open pit mine continued to operate at targeted levels and
averaged 106,319 tpd.
*Crushing and stacking rates remained at targeted levels and averaged
18,484 tpd.
*Follow-up drilling will begin shortly on the three new areas of
mineralization identified as part of the 2012 program. These areas are all
located along trend of the open pit and could potentially increase
resources and mine life.
"In the first quarter both assets again reported solid production results that
are on track with targeted levels. The El Chanate mine delivered another
quarter of consistent and stable results and our cornerstone Young-Davidson
mine continued to achieve productivity levels that met or exceeded planned
levels," stated Scott Perry, President and Chief Executive Officer. He
continued, "Beginning with first quarter financial results, the Company will
begin reporting all-in cash costs. This new cost measure provides a more
accurate view of operating margins, is a good proxy to operating cash flow and
complements our commitment to delivering reliable, sustainable and consistent
performance."
About AuRico Gold
AuRico Gold is a leading Canadian gold producer with mines and projects in
North America that have solid production growth and exploration potential. The
Company is focused on its core operations including the Young-Davidson gold
mine in northern Ontario and the El Chanate mine in Sonora State, Mexico.
AuRico's project pipeline also includes advanced development opportunities in
Canada and Mexico. AuRico's head office is located in Toronto, Ontario,
Canada.
Cautionary Statement
This news release contains forward-looking statements and forward-looking
information as defined under Canadian and U.S. securities laws. All
statements, other than statements of historical fact, are forward-looking
statements. The words "expect", "believe", "anticipate", "will", "intend",
"estimate", "forecast", "budget" and similar expressions identify
forward-looking statements. Forward-looking statements include information as
to strategy, plans or future financial or operating performance, such as the
Company's expansion plans, project timelines, production plans, projected cash
flows or capital expenditures, cost estimates, projected exploration results,
reserve and resource estimates and other statements that express management's
expectations or estimates of future performance. Forward-looking statements
are necessarily based upon a number of factors and assumptions that, while
considered reasonable by management, are inherently subject to significant
uncertainties and contingencies. Known and unknown factors could cause actual
results to differ materially from those projected in the forward-looking
statements. Such factors include: uncertainty of production and cost
estimates; fluctuations in the price of gold and foreign exchange rates; the
uncertainty of replacing depleted reserves; the risk that the Young-Davidson
and El Chanate mine may not perform as planned; changes in laws in Canada or
Mexico; risks of obtaining necessary licenses, permits and authorizations for
operations or projects such as Kemess; contests over title to properties; the
speculative nature of mineral exploration and development; current and future
environmental regulations; disruptions affecting operations; employee
relations; availability and costs of mining inputs and labor; the ability to
secure capital; share price volatility; any decision to declare dividends; the
effect of future financings; litigation; risk of loss due to sabotage and
civil disturbances; risks from holding derivative instruments; risks from the
absence of hedging; adequacy of internal control over financial reporting; and
changes in our credit rating. Actual results are likely to differ, and may
differ materially, from those expressed or implied by forward-looking
statements. Such statements are based on a number of assumptions which may
prove to be incorrect, including assumptions about: business and economic
conditions; commodity prices and the price of key inputs such as labour, fuel
and electricity; conditions in financial markets generally; production levels,
development rates and the costs for each; our ability to procure equipment and
supplies on a timely basis; the timing of the receipt of permits and other
approvals; our ability to attract and retain skilled employees and
contractors; the accuracy of our reserve and resource estimates; the impact of
changes in currency exchange rates; interest rates; taxation; and our ongoing
relations with our employees and business partners. The Company disclaims any
intention or obligation to update or revise any forward-looking statements
whether as a result of new information, future events or otherwise, except as
required by applicable law.
SOURCE: AuRico Gold Inc.
For further information:
For further information please visit the AuRico Gold website at
http://www.auricogold.com or contact:Scott Perry President and Chief Executive
Officer AuRico Gold Inc. +1-647-260-8880
Anne Day Vice President, Investor Relations and Communications AuRico Gold
Inc. +1-647-260-8880